Gladstoneobserver.com.au
Rising Dollar Affects Australian Aluminium Sector
Edited by : AL CIRCLE
2 min read
CQ University economist Professor John Rolfe said a rising Australian dollar was just one factor affecting Gladstone's aluminium sector.
"The Australian dollar puts businesses under a bit of pressure and the fact that other aluminium plants are downsizing before Gladstone suggests there's more competition in the area," Professor Rolfe said.
"The competition suggests Gladstone's industry is more resilient than some other businesses in Australia, which is very comforting."
Professor Rolfe also hinted the Federal Government's introduction of the carbon tax next month will impact Gladstone's aluminium market.
"What they have done is develop an offsetting measure for the alumina sector. Alumina is in the export industry and is very trade exposed, so there needs to be interim measures (imposed by the government), which won't leave a huge impact in the short term," he said.
"What is tricker is how (the aluminium industry) will pan out in the medium and long term. Most aid measures are only temporary and when the carbon tax is introduced next month some industries will be at risk.
"Governments often change or reverse policy, so it may not have a direct impact right now."
Uncertainty being felt in the sector became apparent last year when Rio Tinto Alcan divested 13 of its assets globally.
"The Australian dollar puts businesses under a bit of pressure and the fact that other aluminium plants are downsizing before Gladstone suggests there's more competition in the area," Professor Rolfe said.
"The competition suggests Gladstone's industry is more resilient than some other businesses in Australia, which is very comforting."
Professor Rolfe also hinted the Federal Government's introduction of the carbon tax next month will impact Gladstone's aluminium market.
"What they have done is develop an offsetting measure for the alumina sector. Alumina is in the export industry and is very trade exposed, so there needs to be interim measures (imposed by the government), which won't leave a huge impact in the short term," he said.
"What is tricker is how (the aluminium industry) will pan out in the medium and long term. Most aid measures are only temporary and when the carbon tax is introduced next month some industries will be at risk.
"Governments often change or reverse policy, so it may not have a direct impact right now."
Uncertainty being felt in the sector became apparent last year when Rio Tinto Alcan divested 13 of its assets globally.
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